But why should you get a bike loan? It is, after all, the simplest and quickest way to finance the purchase of your favorite bike. As a result, a loan can assist you.
When it comes to saving for a bike, however, we frequently make compromises in order to reduce expenses and set aside some extra cash. However, not this time. There is no need to compromise on anything when it comes to something so important in our daily lives.
Bike financing can help you get your dream bike or scooter without adding much to your monthly budget. You can get up to 100% of the amount financed through Muthoot Capital Services Limited with a Bike loan. Let's take a look at how a bike loan can improve your shopping experience.
The Advantages of Obtaining a Bicycle Loan
1. You may purchase the bike of your choice.
Assume you select an expensive bike model. Its majestic appearance and premium features may have captured your heart. But what if you lack the necessary funds? Using your savings can be stressful. It has the potential to destabilize your finances. As a result, taking out a loan is the best option.Getting a bike loan ensures that you do not have to make a compromise on your choice.
2. It Aids in the Efficient Management of Your Finances.
You are not required to pay the entire amount at once. A bike loan lightens your financial burden.You can repay the loan in manageable installments. To keep your EMIs low, you can choose a loan amount based on your budget. This will assist you in managing your finances like a pro.
3. You may be eligible for tax breaks.
Taking out a bike loan qualifies you for tax breaks. You will be able to deduct the interest amount from your income taxes.Furthermore, if you are self-employed, you may be eligible for additional benefits. This is due to the fact that the insurance, fuel, and maintenance costs will be deducted from your profits. As a result, you will benefit from depreciation.
4. It Will Teach You Financial Discipline.
If you have a habit of spending money you don't have on things you don't need, taking out a loan can help you. This is due to the fact that you must maintain a sufficient balance in your account to avoid payment defaults.So, taking out a loan to buy your bike will teach you to be more frugal with your money.
5. Interest rates are low.
Bikes are becoming increasingly popular. Lenders are lowering loan interest rates in order to capitalize on rising demand.A bike loan can be obtained at an annual interest rate of around 10%. Before taking out a loan, compare the rates offered by various lenders. This will assist you in obtaining a better rate.
Lower interest rates are available if you have a good credit score. So, don't disregard your credit score as well.
6. It Aids in the Development of Your Credit Profile.
When you take out a loan, the transaction is recorded. If you pay your bike loan EMIs on time, you will be able to improve your credit score. As a result, you will be able to obtain better loans in the future.A bike loan is a small loan that is simple to repay. Using it to build your profile will help you apply for business and home loans in the future.
You can check your EMI amount in a Bike loan EMI calculator before applying for the loan. This will allow you to plan your finances ahead of time. It will also assist you in selecting the best loan.
How to Select the Best Bike Loan
Riding a bike is a thrilling experience, especially for today's youth. Every person fantasizes about owning a bike at some point in their lives. Whatever your reason for buying a bike, the challenge is figuring out how to do so without putting additional financial strain on yourself.A financial company or a bank is the simplest way to secure financing for your bike. It is extremely simple to obtain a bike loan. They are not only simple to apply for and obtain, but they also have competitive interest rates and flexible terms.
Here is a step-by-step guide to selecting the best bike loan that will answer all of your questions and concerns.
Eligibility for a Bicycle Loan
Here are some of the basic criteria that must be met in order to be eligible for a bike loan:- Working professionals should be between the ages of 21 and 60 when applying for a bike loan. Individuals who work for themselves should be between the ages of 21 and 65.
- Whether the applicant is a resident of a metro or a non-metro city, they must have a minimum annual earning amount in order to apply for a bike loan.
- Your address must be the same for at least one year, and your office or residence must have a landline phone.
Down Payment Amount Influencing Factors
When you decide to buy a bike, you must pay a certain amount to the lender as a down payment. It ranges between 15% and 30% of the bike's value. It is advisable to make a down payment in order to obtain lower EMIs on bike loans. Your down payment is also determined by your source of income and the type of bike you intend to purchase.We will assist you in calculating an appropriate down payment while ensuring you receive the lowest EMI possible. But first, you should understand the factors that influence the down payment amount.
- The cost of the bike
- Your ability to repay
- Credit score - the higher your credit score, the more money you can borrow.
A bike loan processing fee is also charged when obtaining a bike loan. The fee is charged for processing the loan request. Under any circumstances, the processing fee is non-refundable.
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